Indiana Cities Advance Data Center Moratoriums Amid Community Protests

Local governments in Indiana are implementing pauses on data center development to address community concerns over environmental impacts. The Marshall City Council approved a 365-day moratorium on data center construction within city limits, delaying a project by Alterra Development at the Brooks Industrial Park. Residents had raised alarms regarding water usage, electricity demands, heat discharge, and low-frequency noise pollution.

Mayor Scott Wolfersberger stated the city will use the one-year period to create an ordinance limiting harmful vibrations. Alterra Development has since modified its plans, scrapping a proposed gas generation plant and reducing projected energy use by 60%, shifting the project from a hyperscale facility to an enterprise-class data center.

Simultaneously, the Indianapolis City-County Council voted 23-1 to advance Proposal 238, which would pause new data center applications in Marion County through December 31, 2027. The measure now awaits final approval from the Indianapolis Metropolitan Development Commission, potentially as early as August 19. This pause aims to allow experts and residents to set standards for building height, sound levels, and environmental impacts.

While three previously approved projects in Warren Township, Martindale-Brightwood, and Decatur Township are exempt, the move reflects a growing trend. Approximately one-third of Indiana's counties have enacted similar bans or moratoriums, contrasting with state-level efforts to attract the industry through tax exemptions.